The U.K. Competition and Markets Authority had initially vetoed Microsoft's proposed $69 billion transaction from January 2022, citing worries that it could stifle competition in the growing market of cloud gaming. Nevertheless, the CMA still has "limited residual concerns" about the sale of Activision's cloud streaming rights to Ubisoft possibly being avoided, cancelled, or not followed through. Therefore, a period of consultation is ongoing until October 6.
The U.K.'s competition regulator on Friday indicated that Microsoft's revised takeover proposal of Activision Blizzard, originally made in August, "opens the door to the deal being cleared." The initial bid by Microsoft of $69 billion, which was put forward in January of 2022, had been blocked by the Competition and Markets Authority (CMA) due to concerns it would stifle competition in the cloud gaming sector. Microsoft's new offer, which includes divesting cloud rights to French game publisher Ubisoft Entertainment, appears to have been well-received by the regulator, although there are still some lingering issues. The CMA has now opened a public consultation on the matter until October 6th. Microsoft and Activision Blizzard have both welcomed the CMA's provisional approval of the revised takeover, with Microsoft vowing to work towards completion of the regulatory process by the October 18th deadline.
The opposition to Microsoft's acquisition of the Call of Duty maker has been widespread, with the CMA, the European Union and the US Federal Trade Commission all expressing concern about Microsoft's potential advantage in the cloud gaming market. To alleviate these fears, Microsoft has offered concessions, such as royalty-free licenses to stream Activision games, which were accepted by the EU but denied by the CMA. A US federal judge in San Francisco subsequently rejected the FTC's attempt to temporarily freeze the takeover in July.
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